The EUR/USD has rebounded and has recovered after the massive drop, the rate has increased a little, but the price remains under immense selling pressure, could resume the downward movement in the coming hours as the USD has received a helping hand from the United States economy. The greenback could increase again as the USDX remain higher, the index is moving sideways on the short term, is consolidating the latest gains and could jump much higher in the coming hours as the US data has come better.
The US dollar has increased aggressively after the US data were sent to the public, the Final Gross Domestic Product has increased by 1.1%, exceeding the 1.0% estimate, while the Final GDP Price Index has increased only by 0.4%, less compared to the 0.6% estimate. Moreover the S&P/CS Composite-20 HPI rose by 5.4%, less than the 5.5% forecast, the Richmond manufacturing Index has disappointed as well, the indicator has decreased from -1 to -7 points even if the traders have expected to see an increase to 2 points. The USD has increased aggressively after the CB Consumer Confidence was released by the Conference Board Inc., the economic indicator has increased from 92.4 to 98.0 points, has come in much better than the 93.2 estimate, has reached the highest level of the last 5 months and has lifted the USD versus all its counterparts, the US currency could resume the bullish movement started in the last week.

You can see that the rate has found temporary support at the lower median line of the descending pitchfork, has increase a little to close the former gap down, but the perspective remains bearish on the short term, the pair could move sideways before will resume the bearish movement, the downward movement may continue in the short descending pitchfork’s body, the price has finally escaped from the ascending pitchfork’s body, has tried to retest the lower median of the ascending pitchfork, but the sellers have taken full control and are driving the rate down. The price could approach the Friday’s low from 1.0908 level if the USDX will have enough power to resume the upward movement, the pair could also find support at the 1.0823 level, the rate is on a declining path and one thing is certain, that the rate is expected to drop further in the coming weeks and months even if the short rebound will retest the median line of the descending pitchfork. Surprisingly or not, the EUR/SD continues the medium term extended sideways movement, the currency pair will stay inside this range, maybe till the USD will decide to increase the interest rate again, personally I don’t think that the FED will raise the rate in the coming months because the Brexit referendum has produced a shock on the international financial markets.

You can see on the H4 chart that the rate has found support around the confluence area formed at the intersection of the lower median line of the descending pitchfork with the minor lower median line of the minor descending pitchfork, the rate could retest the minor median line of even the major lower median line of the ascending pitchfork before will resume the downside movement.

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